Tuesday, April 15, 2008

what it means to be a great trader.

I bet you are wondering what it means to be a great trader. How can you go about becoming one. Well let us look at what it means to be a great trader.

As a trader your overall goal should be to make money. No big surprise there. But just how you go about this process will determine how successful you will be at this.

The first thing you must be able to do is to develop your own system. This should be a list of strict rules to follow. If you do not have the system written down in strict entry and exit strategies you could run into problems later on.

Once you have a strict system you must paper trade and back test it to make sure that it actually works. If it is working for you that is great. You may want to start trading with real money.

If you do trade with real money you are going to have to realize that there will be wins and losses for every system. You will have t be comfortable with losing money now and then. You must have faith in your system.

This will help keep the emotions out of your trading. However if you do experience a large run of losses you may want to stop trading and figure out why. Maybe your bullish system does not do so well in a bearish environment or vise versa.

In this situation you can both pull out and not trade when the markets are bearish or you can develop a bearish system for when the markets are bearish.

For more information on how to trade the stock market visit http://www.stocks-simplified.com

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